New Delhi, Nov 17 (PTI) With cash crunch following
demonetisation impacting agri sector, the government today
eased guidelines for farmers by allowing them to withdraw up
to Rs 50,000 cash per week from bank.

Besides, it has also extended the deadline for payment of
crop insurance premium by 15 days and permitted
APMC-registered traders to withdraw up to Rs 50,000 per week.

This steps will ensure that sowing takes place adequately
in the Rabi season and enough cash is available to the farmers
to buy fertiliser, seeds and other inputs, Economic Affairs
Secretary Shaktikanta Das told reporters here.

"The government has decided to permit the farmers to draw
up to Rs 25,000 per week against the crop loan sanctioned and
credited to their accounts, subject to the limits...and this
will also apply to Kisan Credit Cards," he said.

These accounts have to be in the name of the concerned
farmers, the accounts will have to be KYC compliant, Das said.

Besides, if the farmers receive payments either by way of
cheques or RTGS into the bank accounts, they can withdraw up
to Rs 25,000 per week, Das said.

Similarly, the registered traders with the Agricultural
Produce Marketing Committee (APMC) markets also will be
permitted to draw Rs 50,000 per week to meet various cash
requirements like payment of wages to workers and other sundry
expenses.

"So, this will facilitate smooth procurement process and
help farmers to sell their produce without any difficulty,"
Das said.

The government has also allowed its Group C employees,
including from PSUs, defence and railways, to get salaries up
to Rs 10,000 in cash in advance which will be adjusted against
their November salary. "It is expected that this will relief
pressure on banks," Das said.

Following the demonetisation of 500 and 1,000 rupee notes
on November 8 by Prime Minister Narendra Modi, the government
allowed withdrawal of up to Rs 24,000 per week per person
through cheque and Rs 2,500 from ATMs.